The role of small scale enterprises in income generation in rural communities

Abstract

The study investigated the role of the small scale business enterprises in income generation using cross sectional data from 96 respondents. The main objective of the study was achieved by assessing the role of Small Scale Enterprises (SSEs) in income generation in rural community. The role of small scale business enterprises in generation of money income in rural communities, role of small scale business enterprises in savings in rural communities, the role of small scale business enterprises in generating assets in rural communities and the contributions of small scale business enterprises in employment creation in rural communities. The used a case study research design and result was presented using statistical tables and graphs. Data was captured using Microsoft excel computer program and analysis done using Statistical Package for Social Scientist (SPSS). Data was collected using a questionnaire and in-depth interview. The study revealed that most of the SSEs in Nkozi sub-county are trading business, individually owned, have low level of technology, low revenue and profitability and few employees. Results also revealed that SSEs have indispensable role in employment creation, SSEs leads to the generation of money income. In addition, very small proportion of the income from the SSEs is used for asset creation and savings. This could be attributed to low saving level in the rural communities. It is therefore recommended that lines of credit be created by government due to the fact that savings alone cannot be sufficient for running and expanding business operations. These findings suggest important implications for assessing the role of the SSEs in income generation in the rural communities